How Do You Interpret a Retracement?

How to Analyze Retracement

The price of a instrument does not move up-wards or down-wards in a straight line. Instead the price moves up/down in a zigzag setup called a trend

Upward trend - the price moves upwards in a upwards trend then it retraces before it resumes the up-wards trend direction

Downwards trend - the price moves downwards in trend direction & then retraces before resuming the down-wards trend direction.

A price retracement is a pull-back of the price before the price resumes the original trend movement.

Gold Retracement Meaning - How to Analyze a Retracement - How to Trade a Retracement?

How Do You Read a Retracement? - How to Analyze a Retracement - How Do You Interpret a Retracement?

How Do You Interpret Retracement

1-2: Gold Price Moves Up - XAUUSD Trend Direction

2-3: Gold Price Retracement

3-4: XAUUSD Price Moves Up - Gold Trend Direction

4-5: XAUUSD Price Retracement

5-6: Gold Price Moves Up - XAUUSD Trend Direction

The price retracement definition is explained on the above example - this represents a retracement in an up-ward trend.

How Do I Analyze Retracement

Study More Lessons and Topics: